Life Insurance Corporation of India Limited (NSE: LICI) was listed on the NSE and BSE on May 17, 2022. In this article, we will explore LIC’s growth potential and the LIC share price target 2025 to 2050.
About LIC
Life Insurance Corporation of India (LIC) is an Indian government-owned insurance company established on September 1, 1956, when the Indian government merged over 245 insurance companies and provident societies into a single national insurer. Over time, it has grown to become India’s largest, Indian middle-class favourite and most trusted insurance provider, offering a diverse range of policies such as savings, retirement, and health plans.
LIC Fundamental Analysis
| Stock Name | Life Insurance Corporation Ltd. |
|---|---|
| NSE Symbol | LICI |
| Market Cap | ₹ 5,42,052 Cr. |
| 52W High | ₹ 1222 |
| 52W Low | ₹ 715 |
| Stock P/E | 12.6 |
| Book Value | ₹ 154 |
| Dividend Yield | 1.17 % |
| ROCE | 73.0 % |
| ROE | 63.4 % |
| Face Value | ₹ 10.0 |
| Industry PE | 53.1 |
| Price to book value | 5.55 |
| Debt to equity | 0.00 |
| PEG Ratio | 0.17 |
| Quick ratio | 3.40 |
| Shareholders | March 2023 | March 2024 | March 2025 |
|---|---|---|---|
| Promoters | 96.50% | 96.50% | 96.50% |
| FIIs | 0.08% | 0.14% | 0.10% |
| DIIs | 0.90% | 0.85% | 1.27% |
| Public | 2.52% | 2.49% | 2.13% |
| No. of Shareholders | 33,78,799 | 27,16,181 | 23,71,841 |
Key Factors Driving LIC’s Future Growth
- Digital Transformation via Project DIVE: LIC is going to digitize 95% of its operations through its “Digital Innovation and Value Enhancement (DIVE)” initiative, to enhance customer onboarding, and integrate AI and blockchain technologies for improved efficiency and customer experience.
- Strategic Shift to Non-Participating Products: LIC is focusing on non-participating (non-par) insurance products, which offer higher margins, leading to a 29% growth in non-par premiums in Q1 FY25 and increasing their share to over 37% of total premiums.
- Rural Outreach through Bima Vahak Model: LIC is enhancing rural penetration by employing women (Bima Vahak) agents at the Gram Panchayat level to overcome the insurance gap in underserved areas.
- Introduction of Hybrid Insurance Products: LIC is developing integrated insurance plans that combine life and health coverage, including critical illness riders and wellness-based policies, to meet evolving customer needs.
- Reintroduction of Flagship Mutual Fund Schemes: LIC Mutual Fund has relaunched five key equity schemes to diversify its product offerings and attract new investors.
Pros of LIC
- Consistent Profit Growth: LIC’s profits have grown at a CAGR of 140% over the last three years.
- High Return on Capital Employed (ROCE): LIC’s 5yrs average ROCE is 72.5%, which shows that it is utilizing its capital effectively to generate profits.
- High Return on Equity (ROE): LIC’s 5-year average ROE stands at 80.9%, indicating effective management and profitable operations.
- Low PE Ratio Compared to Peers: The PE ratio of LIC stock is 12.6, which is lower than the industry average of 53.1, making it relatively undervalued and potentially a good investment opportunity.
- Debt Free Company: LIC is a debt-free company, which shows its financial stability.
- Increase in Institutional Confidence: DIIs have increased their holding to 0.10% in March 2025 from 0.00% in December 2024, while FIIs have increased their holding to 1.27% in March 2025 from 1.26% in December 2024, indicating a strong institutional confidence in the company’s future growth prospects.
Cons of LIC
- High Price to Book Value: LIC’s stock is trading at a Price-to-Book Value (P/B) ratio of 5.55, which indicates that its stock is overvalued compared to its book value.
LIC Ltd Balance Sheet
| Particulars | March 2023 | March 2024 | Sept 2024 |
|---|---|---|---|
| Equity Capital | 6,325 | 6,325 | 6,325 |
| Reserves | 39,908 | 76,422 | 91,312 |
| Borrowings | 0 | 0 | 10 |
| Other Liabilities | 4,532,258 | 5,233,300 | 5,621,474 |
| Total Liabilities | 4,578,491 | 5,316,047 | 5,719,121 |
| Fixed Assets | 20,473 | 20,667 | 4,197 |
| CWIP | 331 | 403 | 0 |
| Investments | 4,243,008 | 4,976,133 | 5,413,779 |
| Other Assets | 314,678 | 318,844 | 301,145 |
| Total Assets | 4,578,491 | 5,316,047 | 5,719,121 |
By the end of 2025, the LIC share price is expected to be around ₹1000 in normal conditions. In a bear market, it might be ₹800, and in a bull market, it may go up to ₹1350.
| LIC Share Price Target 2025 | Rupees (₹) |
|---|---|
| Bear Market | 800 |
| Normal Market | 1000 |
| Bull Market | 1350 |
In 2026, the LIC share price is expected to be around ₹1200 in a normal situation. In a bear market, it might be ₹880, and in a bull market, it may cross ₹1750.
| LIC Share Price Target 2026 | Rupees (₹) |
|---|---|
| Bear Market | 880 |
| Normal Market | 1200 |
| Bull Market | 1750 |
According to our analysis, the LIC share price is expected to be around ₹1500 in 2027. In a bear market, it might be ₹950, and in a bull market, it may cross ₹2300.
| LIC Share Price Target 2027 | Rupees (₹) |
|---|---|
| Bear Market | 950 |
| Normal Market | 1500 |
| Bull Market | 2300 |
According to our analysis, the LIC share price may trade near ₹1800 by 2028; bearish conditions could pull it down to ₹1050, while a strong bull run might lift it to ₹2950.
| LIC Share Price Target 2028 | Rupees (₹) |
|---|---|
| Bear Market | 1050 |
| Normal Market | 1800 |
| Bull Market | 2950 |
Under normal conditions, the LIC share price might hit ₹2200 by 2029. A bearish trend could lower it to ₹1200, whereas a bullish surge could raise it to ₹3800.
| LIC Share Price Target 2029 | Rupees (₹) |
|---|---|
| Bear Market | 1200 |
| Normal Market | 2200 |
| Bull Market | 3800 |
In a normal situation, the LIC share price is projected to be approximately ₹2600 in 2030. In a bear market, the value may be as low as ₹1350, while in a bull market, it may rise to ₹5000.
| LIC Share Price Target 2030 | Rupees (₹) |
|---|---|
| Bear Market | 1350 |
| Normal Market | 2600 |
| Bull Market | 5000 |
By 2035, the LIC share price is projected to be around ₹5250 under normal conditions. In adverse markets, the price could fall to ₹2050, while favorable conditions might push it up to ₹15,000.
| LIC Share Price Target 2035 | Rupees (₹) |
|---|---|
| Bear Market | 2050 |
| Normal Market | 5250 |
| Bull Market | 15,000 |
Under normal conditions, the LIC share price might hit ₹10,500 by 2040. A bearish trend could lower it to ₹3000, whereas a bullish surge could raise it to ₹45,000.
| LIC Share Price Target 2040 | Rupees (₹) |
|---|---|
| Bear Market | 3000 |
| Normal Market | 10,500 |
| Bull Market | 45,000 |
In 2050, the LIC share price is expected to be around ₹50,000 in a normal situation. In a bear market, it might be ₹10,000, and in a bull market, it may go up to ₹2,50,000.
| LIC Share Price Target 2050 | Rupees (₹) |
|---|---|
| Bear Market | 10,000 |
| Normal Market | 50,000 |
| Bull Market | 2,50,000 |
| Years | Target Price |
|---|---|
| LIC Share Price Target 2025 | ₹800 to ₹1350 |
| LIC Share Price Target 2026 | ₹880 to ₹1750 |
| LIC Share Price Target 2027 | ₹950 to ₹2300 |
| LIC Share Price Target 2028 | ₹1050 to ₹2950 |
| LIC Share Price Target 2029 | ₹1200 to ₹3800 |
| LIC Share Price Target 2030 | ₹1350 to ₹5000 |
| LIC Share Price Target 2035 | ₹2,050 to ₹15,000 |
| LIC Share Price Target 2040 | ₹3,000 to ₹45,000 |
| LIC Share Price Target 2050 | ₹10,000 to ₹2,50,000 |
Disclaimer
This article is for educational purposes only. It is not a stock recommendation and should not be treated as such. Please ask your financial advisor before making any investment decision.
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